Phase I of Transcontinental Gas Pipe Line’s Mobile Bay Lateralexpansion went into operation last Saturday providing 350 MMcf/d ofcapacity from the Outer Continental Shelf to Station 82 and 214MMcf/d onshore from Station 82 to Transco’s mainline near Butler,AL. July 1 was the initially targeted in-service date.

Phase I of the Mobil Bay Lateral expansion solved bottlenecksfor shipper Snyder Oil Corp. Snyder was able to increase Main Passgas production by about 60% to 300 MMcf/d gross and 120 cubic feedper day net. With the new takeaway capacity in place, the companybrought its Main Pass 261 A-3 and A-5 wells on line and is planningto complete the A-4 well later this month. “We expect our secondhalf production from the Gulf of Mexico to increase more than 50percent compared to the first half of the year now that the Transcopipeline is operational at Main Pass,” William G. Hargett, Snyderchief operating officer. “With the additional volumes being placedon production, we are confident in reaching our corporate target ofincreasing production by 40 percent this year from our coreproperties despite the one-month delay in Transco coming online.”

Phase II of the expansion is expected to provide an additional135 MMcf/d of onshore capacity in November. Upon completion of bothphases, the project will transport 350 MMcf/d from the OCS to theTransco mainline and increase the capacity on the existing lateralfrom 520 MMcf/d to 784 MMcf/d.

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